iShares MSCI World Islamic UCITS ETF USD (Dist)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 60bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 10 Dec 2007 |
| Ticker: ISDW |
| ISIN: IE00B27YCN58 |
This fund offers a targeted investment solution for individuals seeking to align their portfolios with Islamic principles. It provides exposure to a diversified basket of large and mid-capitalisation companies from developed markets around the world that are compliant with Shariah law. The investment methodology involves a rigorous screening process that excludes businesses engaged in activities considered non-permissible, such as alcohol, tobacco, gambling, pork-related products, and conventional financial services like banking and insurance. This values-based approach ensures that the underlying holdings meet specific ethical and religious criteria, making it a suitable core component for a Shariah-compliant portfolio.
By tracking a global Islamic benchmark index, the fund offers broad geographic diversification across developed economies, reducing the risks associated with concentrating investments in a single country or region. The portfolio is naturally tilted towards sectors that tend to align with Islamic principles, such as Information Technology, Health Care, Industrials, and Energy, while completely avoiding conventional financials. This sector profile can result in performance characteristics that differ from conventional global equity benchmarks, offering potential diversification benefits. The strategy provides a straightforward and cost-effective way to participate in the growth of leading global companies while adhering strictly to faith-based guidelines.
This product is designed for investors who prioritize ethical and religious considerations alongside financial returns. It serves as a comprehensive tool for gaining Shariah-compliant exposure to the global equity market in a single transaction. The distributing share class structure also means that it aims to pay out any income generated by the underlying companies on a semi-annual basis, which may be attractive to income-seeking investors. Overall, it combines the potential for long-term capital appreciation from global equities with a disciplined, principles-based investment framework.
